It is common for banks to counter offer on banked owned real estate or short sales. Banks want to recover as much money on a deal where the bank "feels" they are losing money. Just make sure your Realtor has given you goof comps in the area. If you are getting a good deal still and it is your budget it may be a really great deal without me knowing the details.
Best of Luck,
Manuel Brown, Broker
Unwavering Commitment to Service, Unsurpassed Results
Once they get that figure, they typically do three things. If it is less than 50% the value, they may automatically reject the offer, they may accept the offer, how ever the typical response it that the counter the offer. At this point, you need a good realtor that is not just good at selling but also at negotiating. You will need to look at current comps and see if the counter is even in line with what is selling. If you are getting a mortgage, you still will have to be able to get the home appraised at the value they want. You can then counter or accept. I have had many of my buyers counter and the bank come to middle ground. Some, if have included persuasive information with the counter to support the lower amount and have been successful. A lot depends on the negotiator and the mortgage holder.
Some mortgages are held by investors and the negotiator will have to get the lower price approved. Sometimes it is successful and sometimes not. I do not advocate accepting anything just to tie up the property in the hopes to the bank agreeing. They are in the drivers seat and many times that original counter is their bottom line. It is not fair to the seller to simply tie it up as they are frequently on time constraints and they are facing foreclosure and having to move abruptly. Simply to tie up the property in the hopes to get it is simply not fair to them. I had that happen recently. The person tied it up.. then once I negotiated hard and the bank approved their price... they had forgotten and lost interest. The individuals had nearly signed a lease and moved based on this. We lost almost 90 days on this. Not fair. It takes a skilled person to handle a short sale listing and be successful.
If you like the home, put your realtor to work checking comps. If it is reasonable then take it, if not, I would not overpay.
Sohail A. Salahuddin | Group Founder
Innovative Property Consultants Group | Sales and Leasing
Jameson Sothebyâ€™s International Realty
425 W. North Ave. | Chicago, IL 60610 â€¨
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Just because your short sale counter offer came through, this does not mean that the short sale is approved. The bank employee still needs to submit (in most cases) the short sale to the investor for final approval. While 9 out of 10 files probably make it though that step okay, you do not want to invite everyone to a party that may not happen.
So, if you want to assure that your short sale moves along swimmingly, always discuss counter offer terms with all parties before accepting them.